When they talk to executives from the space, the conversation generally starts with definitional matters: shall we be talking logistics here? Or contracts? Which hat do i need to wear?
But wait, how different are these roles? And how different should they be?
I had been speaking recently using a salesman from a technology supplier who given to me his difficulty in working with large organizations. He sells services of interest to both supply chain teams and Cheap Procurement Books. However, he only sells to one department. And when the item is installed, the details are not given to another.
Rarely does he sell to both simultaneously. Actually, it will take some time of these walls to come down. When the divisions are erased, he believes his technology may start to add real value to his client.
It’s a unique side-effect a technology, sold one department can actually help bring the company together and challenge the silos this agreement it labors. My colleague believes that it must be his tools which allows this company to perceive the similarities in roles and initiate a completely new strategy for cooperating. Initially they perceived their overlapping interests. Possibly the difference between ‘procurement’ and ‘supply chain’ is probably not so relevant utilized.
What can these terms mean?
Generally speaking, supply chain refers to the post-contractual phase, that covers logistical issues and matters relating to suppliers in the lower tiers (the suppliers with the suppliers). Procurement is usually considered pre-contractual, regarding sourcing and negotiation.
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